US Justice Department Probes Super Micro Accounting Practices Following Whistleblower Allegations

Super Micro Computer Inc. experienced a significant stock drop following a Wall Street Journal report revealing a US Justice Department investigation. The investigation centers around allegations made by a former employee, Bob Luong, who claims the company inflated its revenue figures. This follows a previous 2020 settlement with the US Securities and Exchange Commission regarding Super Micro`s accounting practices. While the company`s CEO has refuted the allegations, the Justice Department`s inquiry has sparked concern among investors, impacting the company`s stock performance despite its strong year-to-date growth fueled by the demand for AI technology.